TORONTO, Nov. 2, 2010 (GLOBE NEWSWIRE) -- Intellipharmaceutics International Inc. (Nasdaq:IPCI) (TSX:I), a pharmaceutical company specializing in the research, development and proposed manufacture of novel or generic controlled release and targeted release oral solid dosage drugs, today announced that the Company received a letter on October 29, 2010 from NASDAQ, stating that Intellipharmaceutics is not in compliance with NASDAQ's 'minimum stockholders' equity' continued listing requirement of $2.5 million under NASDAQ Listing Rule 5550(b)(1). As of August 31, 2010, Intellipharmaceutics' stockholders' equity was approximately $1.8 million.
The notice has no immediate effect on the listing of Intellipharmaceutics' common stock on NASDAQ Capital Market ("the NASDAQ"), and its common stock will continue to trade on the NASDAQ under the symbol "IPCI" pending any further action taken by NASDAQ as described below. The notice will not affect the listing of the common stock on the Toronto Stock Exchange ("TSX"), which continues to trade under the symbol "I" in ongoing compliance with TSX listing conditions.
In accordance with NASDAQ Listing Rules, Intellipharmaceutics has 45 calendar days, or until December 13, 2010 to submit to NASDAQ a plan of compliance detailing the actions Intellipharmaceutics has taken, or plans to take, that would bring it into compliance with this stockholders' equity requirement. If the Company submits its plan and the plan is accepted, NASDAQ can grant an extension of up to 180 calendar days from October 29, 2010 for the Company to evidence compliance. Alternatively, Intellipharmaceutics could return to compliance if it satisfies the $35.0 million minimum for the 'market value of listed securities' continued listing requirement which is one of the alternatives to the 'minimum stockholders' equity' continued listing requirement under Rule 5550(b).If Intellipharmaceutics submits a plan of compliance and NASDAQ does not accept the Company's plan and does not meet the alternate continued listing requirement under Rule 5550(b), NASDAQ may then initiate delisting proceedings from NASDAQ, at which time Intellipharmaceutics may appeal NASDAQ's determination to a Listing Qualifications Panel. In the event of an appeal, the Company's common stock would remain listed on the NASDAQ Capital Market pending a decision by the Panel following the hearing.